Pareto - Improving Unemployment Policies

Arbeitspapier

We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases net wages and - for certain benefit-systems - unemployment benefits as well. Combining these two policies allows to reduce unemployment in countries with "net-Bismarck" and Beveridge systems without reducing net income of workers or the unemployed. Such a policy becomes self-financing under realistic parameter constellations when taxes are reduced only for low-income workers.

Object Details

• Language: Deutsch

References and Relationships

• Bibliographic citation: Series: W.E.P. - Würzburg Economic Papers ; No. 63

Classification and Topics

• Classification: Wirtschaft ; Trade Unions: Objectives, Structure, and Effects ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General ; Wages, Compensation, and Labor Costs: Public Policy ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
• Subject: Inequality ; Unemployment ; Taxation ; Policy reform

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wälde, Klaus ; Lingens, Jörg
• Event: Veröffentlichung
• (who): University of Würzburg, Department of Economics
• (where): Würzburg
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/22356
• Last update: 15.03.2023, 11:45 AM CET